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What make this fun are many chip and data centers have been building plants in those areas, and the plants require lots of water for manufacturing and cooling.

How about building these plants in areas with plenty of water. Many places located to these areas (Arizona) due to their lax labor and environmental laws.

Water allocation in the American West has been a mess ever since the beginning, when Prior Appropriation was decided as the way to claim water rights. Essentially, the first person to put a claim of water into "beneficial use" gets those rights.

This is why you see California with such a large share of the Colorado River's water rights, even though it "touches" the river the least: they were the earliest fast-growing state to "use" that water. And that's why you see so many water-hungry crops being grown in the West--the owners have the rights already, and to them, if they don't use it, they'll lose it.

So any agreement here needs to make a compromise between states, the federal government, prior settled law, and owners with effectively "free" water that don't want it taken away from them.

It's a complicated issue, but one step would be to force private owners of water rights to list their rights on an open market (right now some owners of water rights, like the Imperial Irrigation District can choose to never sell them). At least that way you can start the conversation somewhere.

(In fact, John Wesley Powell, namesake of Lake Powell, argued strongly against "prior appropriation" before the area was even settled, and instead argued against a collective approach to the limited and volatile amount of freshwater. He did not succeed.)

https://en.wikipedia.org/wiki/John_Wesley_Powell#Environment...

If you look at water usage in Nevada, 75% of it goes to agriculture [1]. Agriculture provides a lot of jobs and food. Unfortunately the resources are no longer there. You can eliminate landscaping (yards, golf courses, las vegas fountains, etc), but it still won't make a dent in the water use.

It's not just Nevada, but Nevada is the poster child here for everything that's gone wrong with water use.

So something's gotta give. And it turns out that farming in deserts may not have been the best use of the land (or water).

[1] https://extension.unr.edu/publication.aspx?PubID=4764

we can go back to Leonardo Davinci(and further), to how Davinci was promised the income from a certain amount of flow from a river as a payment for services rendered, and as an ongoing retainer and support, but how in his own note books he laments how he had been strung along and never given anything amingst the wranglings of those "better conected". there is nothing more provocative to the mindlessly greedy people in the world than a resource, just, JUST!, LAYING THERE! for which the French created "the argument that ends all discussion"
Maybe farming in the desert isn't a good long-term plan.